Tag name : jeff hobbs

November 21st, 2013

Why is Cost Segregation so misunderstood?
In today’s economy when cash is king, credit is tight and it’s a “buyer’s” market, “why is Cost Segregation so misunderstood?”
The truth is; it simply makes no sense. Cost segregation is the “tool” used to identify individual building components for income tax purposes. Cost segregation accelerates depreciation on all tangible personal ...

November 6th, 2013

Cost Segregation Covers Closing Costs for the Commercial Real Estate Investor!
There is a simple program that covers closing costs for qualified buyers of commercial or residential rental property. We use a tax strategy that generates 5% to 12% of the purchase price (or construction cost) of the building and land improvements. This strategy is called cost segregation, or cost seg. For those famil...

October 2nd, 2013

Is cost segregation a good idea to combine with 1031 Like-Kind Exchanges?
First, what is a §1031 Like-Kind Exchange? A §1031 exchange, a.k.a. tax deferred exchange, is a simple strategy and method for selling one qualified property and then proceeding with the acquisition of another qualified property within a 180-day time period. The qualified property must be identified within the first 45 da...

May 18th, 2012

What are the different cost segregation methodologies the IRS allows?
Here is a list of the six most common cost segregation methodologies…
Detailed Engineering Approach from Actual Cost Records
Detailed Engineering Cost Estimate Approach
Survey or Letter Approach
Residual Estimation Approach
Sampling or Modeling Approach
"Rule of Thumb" Approach
For this discussion, we will ad...

April 20th, 2012

Dentists use Cost Segregation for cash flow!
Dentists are turning to cost segregation as a means to tap cash flow from their dental practice. More and more dental professionals realize how easy the process is to take advantage of their dental office when cash flow is tight. Dentists, like other medical professionals, are affected by the slow economy. As more people join the unemployment rolls the...